Let's talk for a moment about product pricing.
How do we know what the right price for our product is?
The answer has nothing to do with the cost of our purchase but with the price that the regular customer is willing to pay.
To achieve the highest conversion rate, we need to fit the price pattern found in the customer's subconscious regarding our product.
I'll provide an example to illustrate these patterns:
Suppose you regularly use a shampoo called "Pampering Shampoo," and you know its price is 9.99 shekels. When you see this shampoo in ads with prices ranging from 8.99 to 11.99 shekels, you'll instinctively make a blind purchase without thinking twice and without conducting in-depth market research.
However, if the price is 5.99 or 14.99 shekels, you will step out of the blind buying mode and realize that something is not right.
If the price is too low, you should look for a catch.
If the price is too high, it's reasonable to assume that you'll buy the shampoo elsewhere.
Now, let's go back to Amazon.
Take the top 10 best-selling products in your keyword niche.
Choose only the products that are similar in features to your product (without quantity packs, different sizes, etc.).
Record their prices in an Excel file.
Calculate the average price.
This average price is the price at which you should sell your product.
If the price doesn't match your purchase price and the actual selling price is leading to minimal profitability or even a loss, look for a way to produce your product at the right price.
Because if your competitors are successfully selling it at that price, there's likely a way to manufacture your product at the right price.
Good luck!
